In this article we will discuss about:- 1. Introduction to Keynes Liquidity Preference Theory of Interest 2. Demand for Money 3. Supply of Money 4. Determination of Rate of Interest 5. Changes in Demand for and Supply of Money 6. Significance of Liquidity Preference Theory of Interest 7. Criticisms 8. Conclusion. Introduction to Keynes Liquidity Preference Theory of Interest: Keynes, [...]
This Article will help you to learn about the difference between classical capital theory, the neoclassical loanable funds theory and the Keynesian liquidity preference theory. Difference between Classical, Neoclassical, and Keynesian Theories of Interest Difference # Classical Theory: 1. Definition of Interest - According to the classical economists, interest is a reward paid for the use of capital. 2. Nature [...]
In this article we will discuss about:- 1. Assumptions of Classical Theory of Interest 2. Supply and Demand for Capital 3. Determination of Rate of Interest 4. Features of Classical Theory 5. Criticisms. The economists like Ricardo, J. S. Mill, Marshall and Pigou developed the, classical theory of interest which is also known as the capital theory of interest or [...]